The High Cost of Overpricing...

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Real Estate Agent RES. 0769103

THE HIGH COST OF OVERPRICING...

I see it everyday in the MLS when I look for properties for my buyer-clients, or work on pricing for a listing appointment, or talk to sellers whose listing has expired and they don't understand why-- the high cost of overpricing.  West Hartford Homes

Overpriced Home in West Hartford

Sellers who have a skewed perspective on the value of their home should realize that correct pricing is their most valuable marketing tool.  When a home is overpriced, it is viewed (from the buyer's perspective) against other similarly priced homes.  If those homes have more amenities, larger square footage, better location, etc., then the over-priced home only serves to showcase the other homes as being of better value within the price range.   

The High Cost of Overpricing

Overpriced For Sale SignThese two actual property history charts from our MLS show how this works with the sellers "chasing the market down". 

Home buyers are savvy, they know how long your home has been on the market, how many price reductions you've made, and what other homes are selling for in the neighborhood.  Bottom lineWhen your home is overpriced you lose negotiating power with the buyer.

It's not always the sellers' fault.  Some real estate agents will provide an inflated value of a home on a listing appointment just to secure the listing.  Then once the property is for sale, they'll use the lack of showings and/or offers to suggest reducing the price. 

The best way to avoid overpricing your home is to select an agent who provides an honest overview of the what's happening in the local real estate market and partners with you in determining the best list price.  Combine that with great staging, professional photography, and a bangin' marketing plan and you'll get the best result-- a quick sale!

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Laurie Murray Logo

Laurie Murray

Keller Williams Realty

(860) 212-8305 Mobile/Direct

www.liveingreaterhartford.com

"Serving West Hartford & Nearby Communities."

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pricing your home correctly
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Rainmaker
1,180,079
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Laurie-Well put, I think pricing a property correctly is perhaps one of the most important jobs we can do. The key is to a job well enough to get seller-buy-in. 

Mar 13, 2013 01:01 AM #1
Rainmaker
645,197
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

One of the first questions a buyer will ask is how long it has been on the market. Time on market usually reflects how well the property is priced.

Mar 13, 2013 01:05 AM #2
Rainmaker
94,295
Dan Mincher, CCIM
The Vollman Company, Inc. - Sacramento, CA
Sacramento Commercial Real Estate

You've made a good illustration that should be very convincing to prospective Sellers. In an appreciating market, it is experience that tells you where to price a listing and get top value without pricing it above and out of the market. 

Mar 13, 2013 01:24 AM #3
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Rainer
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Laurie Murray

Serving West Hartford & Surrounding Communities
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